Tim Hortons: Fighting In A Large-Saturated Market

The TDL Group Corp. is the licensing company for Tim Hortons. TDl employs more than 1,800 people across offices. (Company Facts). The franchise structure employs more than 96,000 people. As of June 30th 2013, there are 3468 locations in Canada. (Franchise Information Package). Tim Hortons is also growing rapidly in the United States. To start a Tim Hortons Franchise it costs between $480,000-$510,000 plus another $50,000 for working capital. (Franchise Information

Problem Definition Kraft Foods Canada plans on rolling out its flagship product, Kraft Singles, to a new population segment; Canadian millennial moms. Millennial moms consist of Canadian moms born between 1981 and 2000. The need to reach out to this new segment is informed by two factors, external factors, and internal factors. Internally, the company has witnessed dwindling overall sales volumes for the product at about one percent annually. Moreover, the market for processed cheese, which Kraft Singles is made of, is shrinking.

Depending on the execution and implementation of an expansion and its success rates, shares could go up or down in value accordingly, which then effects the companies’ shareholders.

Tim Hortons is currently recognized as the largest fast food restaurant chain in Canada. It provides a variety of products that are appealing to a broad range of costumer choices and the prices are relatively attractive for most of the consumer range. They prices are priced low and that’s why they are often favored by people. The company’s product line consists of premium coffee, espresso-based hot and cold specialty drinks (including lattes, 3 cappuccinos and espresso shots, specialty teas, fruit smoothies), home-style soups, fresh sandwiches, wraps, hot breakfast sandwiches and fresh baked goods.

Tim Horton's centralizes production of most of its food items, having them shipped to the stores. For much of its history, the company baked its donuts in-store, but often that is no longer the case. Pricing for Tim Horton's is relatively low, as befits a quick service restaurant. The average ticket is likely well below $5 and the company relies on a high volume of transactions for its success. The margins on food products are relatively low, though margins on coffee products are slightly higher. Fixed costs relate primarily to the company's real estate assets, as well as some equipment. As of 2010, Tim Horton's earned $2.5 billion in revenue and $623 million in net income (2010

Considering the products they provided, Dunkin’ Donuts was the toughest and the only rival for Tim Hortons. Since the market was not yet fully saturated, Tim Hortons did not have to compete with the other food service which provided different category of foods. Despite the fact that Tim Hortons was a late-mover in the US market, it was reasonable that Tim Hortons believed that with the leading position in Canada, it could expand its business to the US.

As student-consultants, we paid regular visit to the Tim Horton's branch (at Baseline/Carling) and we studied the

In Tim Hortons Express, the staff can not deal with a large numbers of people during the busy hours alone; the customers have to wait for the coffee when getting the change. Hence, the customers can get faster coffee if there is a robot delivering the coffee, which is our goal in this project. We need a robot for coffee instead of human being.In order to hold a cup of coffee, the robot should have enough power to supply any size coffee in Tim Hortons including X-large, large, medium and small; therefore, there should be more than 6.78 N power as X-large is 678 mL according Newton’s Law. Tim Hortons Express is a small cafe, which means that the robot should be as small as possible, and the expense of running it should also

When I serve my guests at Tim Hortons, I am very familiar with the phrase “do not talk to me until I have had my coffee”. The difference between before they have had their coffee and after is what has kept this company going for almost 54 years. The best way to keep customers coming back is to give them a reason to come back. Being friendly to our regulars is what keeps them coming back to our location everyday, promoting items that fit their needs, and working together as a team to ensure a fast and an enjoyable experience.

Starbuck’s began their journey in the coffee market with the grand opening of a small cafe, back in 19711. The name for this company is quite unique and there is a clear back story behind this. The original owners were inspired by the story of Moby Dick and its thought to “evoke the romance of the high seas and the seafaring tradition of the early coffee traders.” Since the first Starbucks store, the company was famous for its community development and its active participation within society. Starbucks began to witness great change within their company once their management changed, in 1987 Harvard Shultz was appointed the Chief executive officer. Inspired by the traditional Italian design, Schultz adapted this design and integrated it within the lighting, layout and music choice played in the cafe’s. As a

Counselor met with Ashley at the Tim Horton's near her home to go over the places she applied, to apply for more jobs together, and to give her a job log to continue her search.

Tim Hortons ranks number four on the Canadian Business Top 40 Brands list. Having an iconic brand in the coffee/donut industry means they can build their customer recognition and competitive edge. Having a strong brand image enables Tim Hortons to build customer recognition. This means when a customer is buying a product, they recognize a particular brand. “Consumers are far more likely to choose a brand that they recognize over something unfamiliar”. Having a competitive edge in the market is advantageous to Tim Hortons as it differentiates them in the market. The more customer recognition they receive, the more competitive they become to other brands in the market, like Costa, Starbucks and

According to the Great Speculations(forbes), On August 26, 2014, Tim Hortons and Burger King Worldwide entered into an agreement under which the two recognized companies joined hands to create the world’s third largest quick service restaurant company.

In my opinion, Tim Hortons behave more like a low-cost organization. A low-cost strategy is concerned with giving consumers value for money and focusing managerial energy and attention on doing everything possible to lower the costs of the organization. The first reason is that Tim Hortons’ products are priced lower than competitor’s goods. The company uses low cost advantages as a source of competitive advantage. For example, the price of lager Iced Coffee is $2.23 in Tim Hortons, but the price of Venti Dumb Iced Coffee is $2.95 in Starbucks.

Tim Horton in Albania I would give this advice to Tim Hortons that they should open the store in Albania. The country is an upper-middle income economy. Also, the main demographic of Albania is 25-54 years which would enjoy coffee. Tim Horton adds more competition to the local coffee shops and help boost the local economy. There the Tim Hortons could gain access to different customers, better suppliers, stronger capital and local labour.